Wealthy families with over-privileged children need to consider their assets carefully. Leaving money to a child who suffers from a terrible drug addiction, for instance, could be his or her death sentence. From estate planning to asset protection planning, it is wise to understand the issues around wealth and over-privileged kids, and work to limit their ability to cause problems because of easy access to money. There are a several wealth planning strategies that can be used to insulate the family and mitigate the impact of bad behavior. However, Campbell also notes that “there is diligence and cost associated with setting up protective entity structures, so you want to make sure the cost/benefit makes sense.”
